They Would've Been Better Off Putting The Money Under Their Mattresses*

The average hedge fund fell shy of double-digit returns in 2006, according to year-end numbers from Hedge Fund Research’s HFRX indices, but several individual strategies, especially arbitrage funds, managed to return better than 10%. Still, it wasn’t enough to top to broader markets: None of the dozen HFRX indices or subindices came close to the Standard & Poor’s 500’s 13.62% return.